How does SEPA Direct Debit (SDD) Core/B2B payment work?

SEPA Direct Debit (SDD) is the official/unique EUR direct debit instrument available in all 34 countries of the SEPA (Single Euro Payments Area), to consumers (SDD Core) as well as businesses (SDD B2B).

The main advantages of SEPA Direct Debit are listed below:• Management of recurring payments (subscriptions, loan repayments, etc.)• Pull-based payment, initiated by the creditor (as opposed to a bank transfer which is initiated by the debtor), improving control over collection dates & amounts, and therefore easing cash flow forecasts• Simplifying the customer journey (electronic signature of the direct debit mandate, then no more action necessary from the debtor)• Improved retention rate (vs. card rebill/card expiration & credit limits issues)

Between E and E + 8 weeks: transaction can be challenged by the debtor to his/her bank with no evidence required & immediate re-credit of the debtor/immediate debit of the creditor once the unpaid item is received by Lemon Way

Between E + 8 weeks and E + 13 months: transaction can be challenged by the debtor to his/here bank, but no automatic re-credit - dependent on submission by the creditor of the proof of mandate/product delivery, etc.

Between E and E + 13 months: transaction can be challenged by the debtor to his/her bank, but no automatic re-credit - dependent on submission by the creditor of the proof of mandate/product delivery, etc

For more info on the management of unpaid/returned SDD items, please take a look at the dedicated topic.

If SEPA Direct Debit is not yet included in your contract and if you want to activate it, don’t hesitate to contact us (Submit a New Request button located in the Header of the Lemon Way Support Center), and specify your projected volumes as well as estimated average transaction amounts, so that one of our Fantastic Business Developers can get back to you with a pricing proposal.